Lee Heng Cheong JCA:

Introduction

[1] This is an appeal by the Appellants/Defendants against the Penang High Court's decision dated 25 June 2019 which allowed the Plaintiffs/Respondents' claim and ordered that the Appellants/Defendants pay the Respondents/Plaintiffs, the sum of RM1,500,000.00 with an interest rate of 5% per annum on the sum of RM1,500,000.00 calculated from 27 May 2015 until full settlement; and cost of RM100,000.00.

[2] The Respondents/Plaintiffs filed a legal action on 28 July 2015 against the Appellants/Defendants for professional negligence and negligent misstatement. On 25 June 2019 the Learned High Court Judge allowed the Respondents/Plaintiffs' claim. The Appellants/Defendants then filed the present appeal.

[3] For ease of reference, the parties herein will be referred to as they were in the proceedings before the High Court.

[4] We heard the appeal and after due deliberation and having carefully considered the submissions of both parties, we found that there are merits in the appeal and unanimously allowed the appeal with costs. This judgment explains why we allowed the appeal.

The Salient Facts

[5] The Plaintiffs executed a Sales and Purchase Agreement da